A local Chevrolet dealership carries the following types of vehicles:

The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings.

TRUE or FALSE?

Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVs Quantity 2 5 1 6 2 7 Unit Cost $17,000 16,000 11,000 15,000 27,000 26,000 Unit NRV $15,000 15,000 13,000 18,000 30,000 18,000